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Small Business Calculator

Check whether you stay within the small business revenue threshold. With annual projection and warning on exceeding the limit.

€
€
€

Remaining to Threshold

€13,000.00

Projected Annual Revenue

€21,600.00

Threshold: €25,000.00
48%
Current Revenue
€12,000.00
Projected Annual Revenue
€21,600.00

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Small Business Regulation in Germany

The small business regulation is an important simplification for freelancers and founders with low revenue. Those who stay below the legally defined revenue threshold do not need to charge VAT on their invoices. Since 2025, the threshold is 25,000 EUR annual revenue. The advantage lies in significantly less administrative effort, as neither VAT advance returns nor an annual VAT declaration are required.

How the Calculator Works

Enter your current revenue for the year and your average monthly income. The calculator shows how much revenue you can still earn before reaching the threshold and projects your expected annual revenue. A warning appears if the threshold is exceeded. This way you maintain an overview and can react in time.

Previous Year Revenue Matters

The small business regulation does not only consider the current annual revenue. The revenue from the previous year must also be below the threshold. If the previous year revenue exceeded the threshold, the small business exemption automatically ceases for the current year. That is why it is important to keep track of both values.

When Is Switching Worth It?

Entrepreneurs with high operating expenses often benefit from waiving the small business exemption. Through standard taxation, they can reclaim the input VAT paid on incoming invoices from the tax office. Especially with larger investments at the start of self-employment, the input VAT deduction can outweigh the extra effort for VAT administration.

Frequently Asked Questions

The small business regulation (Kleinunternehmerregelung) under Section 19 of the German VAT Act exempts entrepreneurs with low revenue from charging VAT. Since 2025, the threshold is 25,000 EUR annual revenue. Small businesses do not need to show VAT on their invoices and do not remit VAT to the tax office.
If the revenue threshold is exceeded, the small business exemption no longer applies from the following year. The entrepreneur must then charge VAT on invoices, submit VAT advance returns, and remit collected VAT to the tax office. In return, they can deduct input VAT from incoming invoices.
All taxable revenues of the business count toward the threshold, meaning all income from the sale of goods and services. Tax-exempt revenues such as insurance services or certain medical services are not included in the calculation.
Yes, waiving the small business exemption is possible and can be beneficial when significant input VAT amounts arise, for example from larger investments. However, the waiver binds the entrepreneur for at least five years. After that, they can return to the small business regulation.

All calculations are for general informational purposes only. Not financial, tax, or legal advice. No guarantee of accuracy. Use at your own risk. Full disclaimer